May was accused of failing to act on the crisis, which is also having a huge knock-on effect on the NHS, after she failed to pledge the funds critics demanded last month.

Hammond offered no extra cash for social care in his autumn statement in November.

Downing Street then hastily announced that councils would be able to bring forward council tax hikes to meet local needs, as long as they won approval with a referendum.

More than £900m extra was promised in the form of a New Homes Bonus and other money, but many Tory town halls made clear to Communities Secretary Sajid Javid that the offer way below what was needed.

Matt Crossick/Matt Crossick
Communities Secretary Sajid Javid

Local Labour councillor Robert Evans said that council tax is an unfair and unbalanced levy, which hits the poorest hardest.

“But the real issue is the complacency and incompetence in the way they have run the council. Presumably, they even think Surrey people will back them in a referendum. I think not.

“We have a Conservative government and a Conservative county council. Surrey has eleven Tory MPs one of whom is Philip Hammond, the Chancellor of the Exchequer, and yet they still can’t balance the books. It’s a disgrace.”

Councils can only increase taxes by an extra 3.99% a year without a referendum.

Other hard-pressed councils may follow Surrey’s lead. Liverpool City Council is proposing a 10% rise, claiming government funding cuts mean it will not be able to fund adult social care or children’s services without raising more money.

A Department for Communities and Local Government spokesman said: “If the council sets this proposed budget, then the taxpayers of Surrey will have the final say in a referendum in May. We should trust the people.

“Our long-term funding settlement means more spending power for Surrey County Council during this parliament, with £3.2 billion to deliver the services that local people want.”